Amazon admits that it got the Fire Phone price wrong

There are $83m worth of unsold Fire Phones sitting in Amazon's warehouses, with the retailer admitting that it miscalculated its first smartphone launch.

We didn't get the price right,” Amazon's senior VP of devices David Limp told Fortune. I think people come to expect a great value, and we sort of mismatched expectations. We thought we had it right. But we're also willing to say, ‘we missed.' And so we corrected.

We are going to keep iterating software features to get it better and better. Each release that we're doing, we're learning. Beyond that, I leave it out there to see what people think.”

Amazon originally priced the 32GB version of the device at $199 but has subsequently cut it to $0.99, a move that Limp says has significantly” improved sales.

Amazon last week posted a $544m operating loss, with $170m of that coming from charges relating to rolling out the new handset.